ASCOTT will open its eighth serviced residence in the Philippines in 2017, but has more recently announced the launch of its new web and mobile booking features to enhance search and reservation on its website.

Available across its three brand websites, Ascott’s enhanced reservation system allows guests to view a list of all available properties, filter available apartments by price, view properties on a map and perform multi-city, multi-property or multi-apartment bookings within a single transaction.

There will also be collapsible sections for ease of comparison across various apartment types and rate categories. Customers will also be reminded of the available, optional apartment upgrades and supplementary services before booking confirmation.

Confident its websites offer the lowest rates for its properties, Ascott will give any guest who finds lower online rates a 50 per cent discount off the first night of stay and a matching rate for subsequent nights.

Separately, Ascott will launch the Somerset Alabang Manila in 2017. The 150-unit property will be situated in Alabang, a major business district in Metro Manila and within Filinvest City, an integrated development offering office, retail, residential and leisure space.

A 25-minute drive from the airport, the serviced residence is also within close proximity to the industrial parks of Laguna, Cavite and Batangas.

Residents can choose from studio, one- to three-bedroom residences and penthouse units, all of which will come with a fully-equipped kitchen and living, dining and work areas. Other facilities include an outdoor swimming pool, gym, residents’ lounge, children’s playroom, meeting rooms and a business centre.

Arthur Gindap, regional general manager for the Philippines and Thailand, Ascott, said: “We see immense potential for Ascott in the Philippines as the country continues to enjoy strong economic growth and to attract foreign direct investment.

“Ascott already has a strong foothold in Makati City, the country’s primary financial centre, with three operating properties. Hence, we are actively expanding in other business districts where foreign direct investment has generated robust demand for serviced residences.

Ascott Reit has agreed to buy three serviced residences in China and 11 rental residential properties in Japan for a total of S$287 million.

This will raise FY2012 distribution per unit by 2.9 per cent – from 8.76 cents to 9.01 cents.

Ascott Reit said the three serviced residences in China are located in Shanghai, Shenyang and Suzhou and they will continue to be managed by Ascott.

It will also be buying a portfolio of 11 rental properties (959 apartment units) across six cities in Japan, namely Fukuoka, Sapporo, Kyoto, Hiroshima, Saga and Sendai.

Besides adding 1,576 apartment units to its current 7,060 apartment units, the acquisitions will increase the trust’s asset size by 11 per cent to S$3.1 billion.

The trust added that its share of assets from Asia will increase from 59 per cent to 63 per cent of its total asset value.

The number of cities where Ascott Reit has its presence will also be increased from 25 to 32 cities.

It is also actively on the lookout for acquisition targets.

Chief executive officer of Ascott Residence Trust Management, Ronald Tay said: “Hopefully we will be able to make some acquisitions in the second half of the year. We continue to like Asia very much. So the key markets like Singapore China, and potentially India as well as a new market. For Europe, we will continue to look at Europe on an opportunistic basis. Markets that we like are in Europe include London, Paris and key gateway cities in Germany. “

The acquisitions will be funded partly by the S$150 million raised from Ascott Reit’s equity placement earlier this year and the balance will be funded by debts.

A new business to business conference for the international serviced apartment and extended stay sector will take place on the 8 to 9 July 2013, in London.

Serviced Apartment Summit is designed to bring together professionals from across this fascinating sector of the real estate industry to learn, share best practice and map out the future.

The event is being held in central London and will attract delegates from around the world. It has already secured the backing and sponsorship of three of the biggest names in the sector – international operator BridgeStreet, leading consultancies HVS, and ESSA Consultancy.

Peter Zenneck, vice president development, Jumeirah Group, will give a presentation about his company’s new Jumeirah Living Grosvenor House Apartments project.

Said Event organiser Piers Brown,“The serviced apartment sector is a growing and increasingly valuable sector. Serviced Apartment Summit will be the first event of its kind in the UK, addressing the challenges and opportunities facing those who provide accommodation for companies, families, individuals and government travellers.

“It will feature a comprehensive seminar programme and a host of networking opportunities, and we are excited to welcome the sector’s finest to London.

“We are delighted to have secured the support of some of the industry’s biggest names already, and look forward to forging more significant partnerships in the coming months.”

As well as the opportunity to network with owners, operators, investors, buyers and sellers in the market, delegates will learn about:

Future prospects for the sector
Capitalising on the relocation and ex-pat markets
Integrating serviced apartments in to mixed-use developments
New routes to raising finance
New acquisition strategies
Case studies on recent deal strategies
Brands delivering real growth in downturn markets
Strategic brand alliances
Who should attend?

Serviced apartments might seem to be a new concept in India, but the fact is, that these are around for quite some time now. A serviced apartment is like any other apartment with the basic difference being that it gives back assured returns to the buyer, sometimes as high as 50%, after deducting the maintenance charges.

According to Neeraj Gulati, Managing Director, Assotech Realty Pvt Ltd, “Serviced apartments provide services like a hotel, such as housekeeping and room service. But, unlike a hotel, a person using a serviced apartment can cook his own food too.” Gulati has one of the finest serviced apartments in NCR called Cabana, at Indirapuram.

So, serviced apartments can be owned by you while the client servicing is provided by the seller. The seller also takes the responsibility of getting you tenants. Gulati remarked that mostly people from foreign countries on work visas stay in the serviced apartments for a duration ranging from a month to even six months or more. “Usually corporate guests or those working for companies here hire serviced apartments.

The benefits vis-à-vis a luxury hotel are that firstly, serviced apartments give you the feel of a home and secondly, any conference or seminar or business meets can be done in the nearby facilities that are often clubbed with the service apartment projects. Also, these are cheaper than a good hotel,” Gulati said.

According to Sanjay Rastogi, Director, Saviour Builders Pvt, Ltd, “A serviced apartment is often a fully-furnished accommodation which is available for short-term or long-term stays. These apartments come with basic amenities for daily use, which include a kitchen with cooking range, kettle, microwave, a washing machine etc.” Rastogi remarked that if you don’t want to cook or do the routine chores, you can even sign up for a complimentary breakfast, laundry, among other things.

He pointed out that the concept of serviced apartments works very well in the metros and larger tier-II cities, where starred hotels are notoriously overpriced. “Serviced apartments are the emerging trend in the corporate hospitality sector. Often, the executive traffic of many MNCs and domestic companies is too erratic to justify a standalone company guesthouse. And people find service apartment a good investment avenue,” Rastogi elaborated. His group is coming up with a project at Crossings Republik called Saviour Street.

Serviced apartment group Quest has announced plans to build ten new apartment buildings in NSW by 2014.

These are in addition to three new properties that will open in Queensland, one in outer Melbourne, one in regional Victoria and another in the Adelaide CBD this year.

New serviced apartments will be built in Albury, Shellharbour, Nowra, Orange and Liverpool with five further locations yet to be revealed.

The announcement was made by Quest chairman Paul Constantinou alongside NSW premier Barry O’Farrell at the opening of the group’s latest property at Sydney Olympic Park.

The increase in accommodation will be aimed at extended-stay business travellers.

The new buildings will increase Quests total stock of rooms by over 70%, taking pressure off existing apartments targeting business travellers of four or more nights per stay.

“This investment follows the increasing need by business travellers for accommodation in the State’s regional and suburban hubs where traditional accommodation options are no longer meeting their needs,” says Constantinou.

“This year, we will commence construction at five new locations – in Albury, Shellharbour, Nowra, Orange and Liverpool. We will continue this expansion, with another five properties to commence in the following year.”

Quest currently has 21 properties in NSW, providing accommodation to approximately 120,000 extended stay business travellers.
On completion of these projects, Quest aims to have a total of 2,365 rooms in NSW hosting around 200,000 travellers annually.

Quest will build serviced apartments in regional areas where the NSW government is spending on infrastructure.

“Quest is building properties in areas where there has been significant investment in public and private infrastructure such as roads and rail, hospitals, educational institutions and retail precincts.”

“This commitment to investment in thriving regional and suburban locations across NSW demonstrates business confidence in long term growth across the State,” said O’Farrell.

The group has been active in recent years with its expansionary plans.

In July last year, Quest agreed to lease all 131 apartments that form the residential component of the Kyren Group’s $100 million mixed-use building in the Adelaide CBD.

In May last year Quest signed a lease with the Deague family’s Asian Pacific Group for a $50 million refurbishment of the Peninsula Centre in Frankston. This project consists of 81 serviced apartments within the 150 apartment building, to be completed in early 2013.

Established in 1988, Quest currently has 140 properties across Australia, New Zealand and Fiji.

Cities such as Gurgaon, Chennai, Hyderabad and Pune offering employment opportunities due to the strong presence of IT companies, have become the centre of real estate activity too. Of the entire configuration of properties, service apartments have generated enough interest. And Hyderabad seems to be fast catching up with the trend.

Here, service apartments are often popular where there are commercial office spaces in proximity. Hyderabad’s areas such as Gopanhalli, Madhapur, Gachibowli, Kondapur and Hi-Tech City are some of the IT hubs where the developers are showing their interest. “Recently Hyderabad-based firm PBEL Property Development (India) Pvt. Ltd., has unveiled two towers within its larger PBEL City township project, comprising a total of 13 towers, at APPA Junction on the periphery of the city,” says Padma Reddy from a brokerage firm Venkateshwara Swamy Realtors. PBEL is a global joint venture between three construction majors- PBC, Israel (Property and Building Corporation), Electra and INCOR India.

“The towers, Argentum and Aurum will offer 2BHK and 3BHK apartments that come in sizes upwards of 1,094 sq ft and will have 400 units,” she added. The towers Argentum and Aurum offer 2BHK and 3BHK apartments that come in sizes upwards of 1,094 sq ft and will have 400 units. Each of these towers will have 20 floors and the company is offering the units at Rs 3,300-Rs 3,400 per sq ft. These would be fully furnished apartments and owners will have the option to rent it out to prospective tenants.

The demand for serviced apartments is increasing. And this is putting pressure on the rental markets too. “As there are more people coming to the city for employment, there are more requirements of the serviced apartments in Hyderabad because of the IT-centric developments. Citing the need, developers too are now planning new projects for the segment. And it is expected that rents would further increase. Rents of a 2/3 BHK, 1,700 sq. ft serviced apartment in Gachibowli is between Rs.20,000 and Rs 24,000,” says Ganesh Swamy from Raju Consultancy. Similarly, HI-Tech City has a rental range of Rs 14,000-18,000 per month for serviced apartments. Realtors in the region believe that rents would further increase in coming months.

Indeed, the Thai capital ranks second behind Japanese capital Tokyo, according to information released by Roomorama.com, the US-based short-term home rental site.

Bangkok has been one of the top three Asian destinations since 2011, and in 2012 was followed by Chinese capital Beijing.

Roomorama’s co-founder, Jia En Teo, said that Bangkok is the top destination in Thailand chiefly because it was the first Thai destination to be featured on the website.

According to Roomorama.com, the heavy focus on Bangkok is due to a large number of guests travelling to the city for business or leisure. These travellers are often looking for alternatives to hotels, especially when they are staying in the city for over three nights and desire all the comforts and facilities of a real home.

The website is now planning to feature alternative Thai destinations, such as Koh Samui, Phuket and Chiang Mai, as these locations are typically the most popular places for visitors in Thailand.

Teo commented, “Koh Samui and Phuket will certainly gain in popularity as we get more villa options for travellers who are tired of the large resorts”.

In addition, Teo stated, “Top five destinations worldwide this year [2012] are New York, London, Paris, Tokyo and Sydney, while those in 2011 were New York, London, Paris, Barcelona and Rome.”

Further information released by Roomorama shows that the top five nationalities booking rental homes via the website were American, Italian, British, Australian and Singaporean.

With Asian cities climbing the rankings as desirable travel destinations, and as a result becoming more expensive, both homeowners (hosts) and travellers (guests) will see better value in offering a space for rent or renting a space whilst travelling, according to Roomorama.

PhoCusWright Inc, a US-based travel market research company, reports that the worldwide vacation rental market was worth US$105 billion in 2012, up from $85 billion in 2011.

According to Teo, Asia accounts for less that 20 percent of the 2012 total, because it is not yet well infiltrated. However, she added that this low saturation in the Asian vacation market gives Roomorama an excellent opportunity for expansion.

Teo stated, “Asia is becoming more affluent and savvy. Travellers are looking for ways to have a unique yet affordable travel experience. Asian travellers also seek comfort and reliability”.

To meet the need of Asia’s travellers, Roomorama concentrates on professionally managed properties in the mid to high-end market, for knowledgeable and confident travellers who are seeking a valuable, yet unique and comfortable experience.

With regards to properties available on Roomorama, Teo stated, “We have small, local property management companies that manage anywhere from 50-500 properties. By partnering with them, we’re able to grow our listings quite quickly while ensuring high standards of quality and reliability”.

At present, Roomorama has over 250,000 registered users benefiting from the website and this number is forecast to more than double in 2013.

In addition, properties featured on the website increased by 30,000 in 2012 to a total of 70,000. By quarter three 2013, the number of properties on Roomorama is forecast to rise to 100,000 in over 5,000 travel destinations worldwide. Asian properties on Roomorama make up 28.5 percent of the total number, including 7,000 in South East Asia. In comparison to other South East Asian countries, Thailand has the most properties by far with a total of 2,500 which is expected to double by mid-2013. It is followed in the rankings by Indonesia and Malaysia.

To sum up, Teo stated that the short term rental market is still in its infancy but it will expand to become a strong rival to the hotel industry.

Minor Hotel Group has opened its first Oaks property in Asia and confirmed that another Oaks hotel will open in China next year.

The brand has added a number of properties to its portfolio in 2012, most recently in Thailand – Oaks Bangkok Sathorn – which is the 41st in the brand’s portfolio, and the first of its planned expansion into Asia.

The 115 apartments at the Oaks Bangkok Sathorn are generously proportioned with separate bedrooms, a living area and kitchen in a choice of studio, one, two or three-bedroom configurations, ranging from 39 up to 185 square metres. Balconies open to city and river views offering an urban sanctuary above the bustling city.

Oaks Bangkok Sathorn is located next door to and shares some facilities with Anantara Bangkok Sathorn, another of Minor Hotel Group’s properties in the city, and is just a short stroll to Bangkok’s Bus Rapid Transit (BRT) where guests can connect with the sky train (BTS) and easily access many of the attractions on offer in this vibrant, sensory city.

Guests can work out in the gym, enjoy a swim in one of Bangkok’s longest hotel pools, indulge in a spa treatment at Senses Spa, or play tennis on the onsite court. Dining includes the innovative 100° East all-day dining restaurant and gourmet pizzeria Crust. For business guests an array of conference and meeting facilities are available.

Oaks Sanya

Oaks Sanya in China will be the next to join the portfolio when it opens in late 2013. The new property is currently under development on Hainan Island, and will feature 122 two and three-bedroom duplex apartments, each with kitchen facilities.

Oaks Sanya will also feature a Chinese restaurant, a bar, a kids club and a gym. The apartments overlook both bays of the Serenity Coast peninsula and are located five minutes’ walk from the beach.

Dillip Rajakarier, CEO Minor Hotel Group, said, “Since taking ownership of Oaks Hotels & Resorts in 2011, we have been looking forward to expanding the brand into Asia and these two properties are the start of that expansion. Oaks is a great complementary addition to Minor Hotel Group’s portfolio and we plan to continue to grow the brand in Asia and beyond in the year ahead.”

Emaar Properties, Dubai’s largest property developer, said it will expand Dubai Mall to include luxury homes, serviced residences and a new hotel as part of its 1m sq ft expansion.
The developer, which in February announced plans to expand the world’s largest mall, will also add a shopping boulevard lined with restaurants and water attractions.

The sale of the residential units, which will feature direct access to the new shopping boulevard as well as views of The Dubai Fountain and the Burj Khalifa, will launch soon, the developer said in a statement Thursday.

“With the mall expansion to feature a modern hotel, luxury homes and serviced residences, designed to the world-class standards associated with Emaar, we are further contributing to strengthening Dubai’s powerful growth drivers – the tourism, retail, hospitality and business environments,” said Ahmad Al Matrooshi, managing director, Emaar Properties.

Emaar said it had completed the masterplan for the extension and expected construction work to begin soon.

Dubai Mall, which boasts 1,200 retail stores and 160 food and beverage outlets, was the world’s most visited shopping and leisure destination last year. Over 54m shoppers visited the mall between January and September, up 15 percent compared to the same period the previous year.

Dubai, home to some of the world’s glitziest shopping malls and an indoor ski slope, has staged something of a recovery this year, partly due a tourism and retail boom. Tourist arrivals increased 10 percent and hotel revenue 19 percent in the first half of the year.

Retail accounts for around 30 percent of GDP in the emirate, according to Standard Chartered estimates. Dubai is home to about 40 shopping malls.

Emaar last week said it would cooperate with Dubai Holding to build a new tourism and leisure development in the emirate, which will include an even bigger mall. Mohammed bin Rashid City will feature a retail complex ‘Mall of the World’ and more than 100 hotels able to accommodate up to 80m visitors a year.

“The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city,” Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum said in a statement.
Dubai aims to become a business and cultural capital for 2bn people in the surrounding region, he added.

The emirate also announced this week it had approved plans for a AED10bn (US$2.7bn) entertainment and leisure development to the south of Dubai in Jebel Ali, which will include five theme parks.

The company will open the 100-unit Somerset Vista Ho Chi Minh City in December this year, plus the Vista Residences, a 168-unit property within The Vista that will be available for lease this November. With these new additions, Ascott now operates 11 properties across four cities in Vietnam.

“Ascott established its presence in Ho Chi Minh City more than 15 years ago and we have always enjoyed strong occupancies for our two serviced residences in the city’s central urban district of District One,” said Alfred Ong, Ascott’s Managing Director for Southeast Asia & Australia.

“With the government’s plans to transform Ho Chi Minh City’s District Two into Vietnam’s new commercial and financial centre, we see strong growth potential to expand into the area. Somerset Vista Ho Chi Minh City and Vista Residences, with their strategic location in District Two, proximity to facilities such as international schools, elegant design and quality product finishes, will appeal to expatriates and families with children looking for quality accommodation.”

Ascott will further expand its Vietnam portfolio in the company years. The company’s first property in Haiphong – Somerset Central TD Haiphong City – which will open in 2013, while the launch of the Somerset Danang Bay in 2014 will also mark its entry into that city. In total, Ascott is planning to increase its Vietnam inventory from 1,600 to 2,200 apartment units by 2015.

Somerset Vista Ho Chi Minh City and Vista Residences will both offer apartments ranging from two to four bedrooms, all including kitchens, separate work and living areas and home entertainment systems. Communal facilities include a 50-metre lap pool overlooking landscaped gardens, a kids’ pool and playground, a gymnasium and a clubhouse with steam room, sauna, jacuzzi, tennis court and golf putting green.